Amman, Jan. 19 (Petra) - The Cabinet on Monday was briefed by Minister of Local Administration Walid Masri on the plan to upgrade the municipal sector, which has been in effect since the beginning of 2025 and resulted in reducing municipal indebtedness, with total debt falling from JD630 million in 2024 to JD285 million in 2025, after exemptions and settlement of financial obligations amounting to JD345 million.

Masri attributed these results to a comprehensive reform vision aimed at improving the financial and administrative conditions of municipalities, raising the level of municipal services, and enhancing environmental performance, with a focus on sustainability, efficiency, and rationalizing spending. He said the plan included amending the Local Administration Law, addressing accumulated municipal debt owed to various entities and institutions, in parallel with applying financial sustainability policies based on enhancing revenues and controlling expenditures, in addition to activating electronic financial and administrative systems in municipalities, as well as zoning plans and warehouse and storage systems.

He noted that the remaining debt was rescheduled over repayment periods ranging between five and 15 years, taking into account the financial conditions of each municipality. The exemptions included interest on debt, overdrafts, and contractors’ arrears, as well as obligations owed to the Social Security Corporation, the National Electric Power Company, and other entities. He added that municipal revenues grew in 2025, rising from JD76 million in 2024 to JD109.9 million, an increase of JD33.9 million, or 45%, which positively reflected on municipalities’ ability to meet their financial obligations and improve their services.

On services and tenders, the total value of awarded and implemented tenders in 2025 rose to JD96.3 million, compared with JD74.6 million in 2024.

He reviewed the results of an evaluation of the work of municipal committees over the past six months, which was based on reports by the mystery shopper, the Audit Bureau, field visits, and revenue collection levels.

Regarding the Cities and Villages Development Bank, he said the bank’s liquidity rose to JD4 million in 2025, noting that the most prominent measures taken included addressing and rescheduling municipal debt and overdrafts amounting to 303 million dinars in favor of 79 municipalities over repayment periods ranging between five and 15 years, depending on each municipality’s financial situation, and at a graduated interest rate of between 0.5% and 2% instead of 7.5%, conditional on preparing implementable financial and administrative reform plans.

He added that within the financial reform plan, efforts were made to ensure annual cash flows to the Cities and Villages Development Bank and to launch a disciplined credit policy that takes into account the realities of municipalities and project priorities, with cash flows reaching JD35 million in the first year and a cumulative total of JD175 million over five years.

On environmental performance, he said cleanliness levels showed improvement, with the performance of 50 municipalities improving within the 70–100% classification category and 42 municipalities within the 40–60% category.

//Petra// AF

19/01/2026 19:41:02